Reporting Cash on the Balance Sheet

Throughout this course, many discussion opportunities come up where you need to respond to other

people’s opinions and comments. Respond to your Discussion topic after you have completed your

Reading.

In business today, the end result is often to generate cash flows that the company can use for future

growth to meet current and long-term obligations or to return to owners. Under current GAAP standards,

the balance sheet has assets listed in order of liquidity. Under IFRS, cash is listed last because it is

considered the result of being in business, which follows the income statement mentality.

In your opinion, which location is the better location for reporting cash on the balance sheet? Why did you

select that location?

Kieso, PhD CPA, D.E., Weygandt PhD, CPA, J. J., & Warfield PhD, T.D. (2018). Intermediate Accounting:

IFRS Edition (3rd revised ed.). Hoboken, NJ: Wiley.

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